According to iSuppli's itemized breakdown of parts, Samsung's new Galaxy Tab carries a Bill of Materials (BOM) totaling $205.22. That's a good chunk less than Apple's iPad, which breaks down to a little over $264 for the 16GB 3G version.
"Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is a larger version of Samsung's Galaxy smartphone," said Andrew Rassweiler, director, principal analyst and tear down services manager for iSuppli. "While the design approach makes the Galaxy less expensive to produce than the iPad 3G, it also makes for a product that lacks the same usability. The Galaxy Tab's screen resolution, size, and technology are not at the same level as the iPad. This is a critical difference, given the fact that the display is a key differentiating factor for the iPad."
As is typically the case, the most expensive part of Samsung's tablet is the display, which iSuppli pegs at $57. The Flash memory costs $51, and after that there's a steep dropoff in component prices, starting with the mechanical parts (PCBs, metals, plastics, connectors, etc.) that add up to $15.22.
Sprint isn't actually selling iPads, but Sprint CEO Dan Hesse told GigaOm that it's seen brisk sales of its Overdrive 3G/4G modem to iPad owners. The iPad is available in a Wi-Fi-only flavor, as well as one that supports AT&T's 3G bands. Verizon recently began selling the tablet in-store bundled with a Verizon MiFi.
Both the Overdrive and MiFi are mobile data devices that create a small Wi-Fi hotspot. Consumers that are in areas with Sprint's 4G WiMAX technology have reason to pick up an overdrive, but that's only available in 55 cities. If anything, this just shows how anxious people are to get an iPad with mobile data that isn't tied to AT&T.
As far as ViewSonic is concerned, you can forget any talk of an iPad killer emerging. Apple's magical slate is going to snatch up 50 percent of the projected 45 million tablet sales in 2011, ViewSonic predicts, and the display maker will be thrilled if it can claim 10 percent of what's left. That comes out to over 2 million units.
ViewSonic plans to bring its ViewPad 7 device to the North American market sometime this year, which launched today in Taiwan for what amounts to around $480 in U.S. currency. The ViewPad 7 runs Android 2.2 and is a couple of inches smaller than the iPad, but it isn't the only tablet ViewSonic has on tap. The company also plans to release a 10-inch version with an Intel Atom N450 processor and dual-booting OSes (Windows 7 Home Premium and Android 1.6), and a 5-inch model somewhat along the lines of Dell's Streak. In addition, ViewSonic announced plans to release a 9.7-inch tablet built around Nvidia's Tegra 2 platform, which if priced right might have the best shot at helping ViewSonic reach its 10 percent goal.
One advantage ViewSonic's Asia Pacific president Alan Chang notes is that unlike some of its competitors, ViewSonic doesn't have related product lines (smartphones, netbooks) that could end up cannibalized by tablet sales.
The Samsung Galaxy Tab Android tablet will be hitting US retail next month, but what if you don't care to do more business with the mobile carriers? As it turns out, Best Buy (of all companies) is coming to the rescue. The electronics retailer will be selling a Wi-Fi-only version of the Galaxy Tab for $499.
The Tab is already making an appearance in Best Buy advertizing, but no firm release date is mentioned. Best Buy will also carry the 3G versions for both Verizon and Sprint. The Galaxy Tab will sport a 7-inch touch screen LCD with Android 2.2 under Samsung's TouchWiz interface. The $499 price point is exactly the same as the 10-inch Wi-Fi-only iPad. It's going to be interesting to see how consumers respond to the choice.
Show of hands, how many of you play Farmville? Now keep your hands up if you own or plan to purchase an iPad. Everybody else, go grab a gun and shoot everyone in the leg that has their hands up. We kid, we kid -- natural selection will take care of itself.
In the meantime, all you iPad toting, Farmville loving miscreants can have the best of both worlds, as Zynga announced its popular game is now available on Apple's magical tablet.
Farmville is already being played by more than 60 million people around the wold, with players receiving in excess of 500,000 virtual gifts in the game every 24 hours, Zynga says. But for all its success, Farmville has been tied to privacy concerns on Facebook, with the Wall Street Journalclaiming it's one of the titles blatantly ignoring users' privacy settings by sharing personal info with advertisers. Prior to that, Zynga CEO Mark Pincus admitted to sleazy business tactics early on in attempt to earn a buck, such as offering "users poker chips if they downloaded this zwinky toolbar" that he himself said he "couldn't get rid of it" once installed.
Barnes and Noble is slated to hold a Nook event on October 26, and we're hearing rumblings of a major hardware revision. The new Nook, according to a source that spoke with Cnet, may have a full color touchscreen in place of the monochrome eInk display it currently uses. The screen would be 7-inches, and the device would retail for $249. The Nook would continue to be based on Android as well.
The Amazon Kindle ereader has seemingly stuck to the eInk route for the time being, and Barnes and Noble may be looking to blow past them technologically. Missing is any information on what type of screen technology the 'Nook Color" would be using. A standard LCD, like the iPad uses, comes with its own set of drawbacks. The color eInk-like Mirasol and PixelQi dispalys have been demoed, but no one has foreseen their use in ereaders so soon.
With Amazon looking to sell you a Kindle for $140, will consumers pay more for a color screen? The $500 price point of the iPad also creates an interesting barrier. Those willing to deal with LCD screens for reading might be willing to pay more for the iPad's increased functionality. What's your prediction for the announcement?
Verizon raised a few eyebrows this week when it announced it would sell Samsung's Galaxy Tab for $600 on November 11, 2010. Days earlier, Verizon said it would start selling Apple's iPad (Wi-Fi) version for $630 bundled with Verizon's MiFi Mobile Hotspot device. Math majors can check our numbers, but that's just a $30 price difference. Is it enough?
"Competitors coming into the market have to offer something better, different, or cheaper," said Avi Greengart, an analyst with Current Analysis.
Point blank, Greengart says Verizon's pricing of the Galaxy Tab is simply too high and should have been tagged at under $400. Even with the Tab's advantages over the iPad -- integrated camera, USB, Flash support -- Apple's strong brand name is just too much to contend with at similar price points, especially considering the larger selection of apps.
"Tab feels solid in your hand but without the App Store behind it and with a smaller screen they can't charge the same amount as the iPad," Greengart said.
During a recent summit in Taiwan, Acer chairman JT Wang once again attempted to put the iPad hype into perspective, saying Apple's magical tablet isn't impacting notebook sales the way some analysts predicted.
Wang did admit that the iPad and similar products will become a new mainstream segment in the PC market, but not at the expense of other products. And even though the iPad has been selling well since it came out in April, Wang says that's par for the course for new product launches, but expects consumers to eventually return to their senses.
Part of Wang's confidence in the notebook market is that many iPad owners haven't gone and dropped their laptops off at Goodwill. Instead, they're using them for typing up documents, drawing up charts, and other tasks that the iPad is ill-equipped to handle.
Apple CEO Steve Jobs sure ruffled some feathers with his statements on yesterday's earnings call. RIM is just the latest to respond to some of the assertions Steve Jobs made. RIM CEO Jim Balsillie posted a rebuttal on the RIM blog that covered a few points. First, Balsillie contended that a 7-inch tablet will work for consumers just fine. Jobs claimed the users would have to "sand down their fingers to around one quarter of their present size" to use a 7-inch tablet. RIM also reminded us that their PlayBook will have Adobe Flash support.
RIM's other beef with Jobs revolved around the Apple claim that they had passed Blackberry in sales. Balsillie claims that Jobs was comparing a time they knew BlackBerry sales would be weak, leaving out the higher demand month of September in RIM's numbers. We may have to wait to see if an outside group can compare overall sales from the same period to settle this. In the meantime, we await the next company to launch a counterattack at Steve Jobs.
Despite rumors to the contrary, it doesn't look like Apple has any plans to ship a 7-inch iPad to compete with other upcoming tablets with similar sized screens.
"It's meaningless unless your tablet also includes sandpaper, so that the user can sand down their fingers to around one quarter of their present size," Jobs said during Apple's earnings call yesterday afternoon.
According to Jobs, tablets smaller than 10 inches just don't make sense.
"Apple has done extensive user testing and we really understand this stuff," Jobs said. "There are clear limits on how close you can place things on a touchscreen, which is why we think 10 inches is the minimum screen size to create great tablet apps."
Interesting comments coming from someone who represents the company responsible for the iPhone and iPod touch, two touchscreen devices that are decidedly smaller than 7 inches.